June is usually not a good month for gold

Calculated in euros, the gold price in May reached 1,841.23 euros on the last trading day and thus the highest monthly close ever. In May 2022, the ounce of gold was still at 1,718 euros, i.e. significantly lower. On average, June brings a loss of 0.31 percent. Important for the further development of the gold price are the economic prospects and how it continues with the key interest rates in the USA. The banking crisis, which is not yet out of the world, must not be forgotten. The Fed’s interest rate decision has been made, and it will remain at 5.0 to 5.25 percent. The expected pause in interest rates has therefore occurred.

In the run-up, the gold price dropped. And then there’s the question of whether there will be an interest rate hike in July and a second one this year. At the moment, it looks that way. In any case, inflation in the U.S. is cooling, albeit very slowly. If there is still inflation between 3.0 and 3.5 percent at the end of the year, then interest rate cuts could be a distant prospect. That’s because the inflation target is still at 2 percent. The markets see a 60 percent chance of a 25 basis point rate hike in July. A sustained rise in gold prices is unlikely to occur until there is confidence that the Fed will stop raising interest rates. In May, the Fed had raised rates for the tenth time.

Financial markets are now pricing in more than a 50-50 chance of another rate hike in July or September. If you look at other central banks, such as Australia or Canada, they have taken a break in raising interest rates, but then raised them again. This could also be the Fed’s intention. But the day of the interest rate cuts will come and as a gold fan you could position yourself in stocks like Karora Resources or Chesapeake Gold.

Karora Resources – https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ – achieved record production at its two Western Australian mines in the first quarter of 2023. Full-year 2023 production is expected to grow to 145,000 to 160,000 ounces of gold.

Chesapeake Gold – https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ – is active in North and South America. The flagship Metates project in Durango contains gold, silver and zinc. It is one of the largest undeveloped gold and silver deposits in the world.

Current corporate information and press releases from Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -).

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